Corning announced an extension of its investment pact with Samsung Display. The company will remain a shareholder in Corning for another seven years, until at least 2028.
Samsung Display has been an investor in Corning since 2014, when it received preferred shares as part of Corning buying out their joint venture Samsung Corning Precision Materials. The shares can now be converted to common stock, giving Samsung Display a higher dividend and a 13 percent direct stake in Corning.
Corning has agreed to buy 35 million of the 115 million common shares issued to Samsung, leaving the company with a 9 percent stake. The two companies will enter into a new agreement for another seven years, with Samsung Display maintaining its stake in Corning until at least 2028.
The deal eliminates the preferred shares class at Corning and allows for payment for the shares over two years. With the transaction, the company also resumes its share buyback programme.
